Free AHM-520 Exam Dumps

Question 31

- (Topic 2)
Assume that the Lambda, Mesa, and Novella health plans are equal in every way except that the health plans have obtained equal amounts of net cash inflows from different sources, as shown below:
HealthPlan Source LambdaFinancing activities MesaInvesting activities NovellaOperating activities
From the following answer choices, select the response which indicates the health plan that would most likely be the most attractive to a potential plan sponsor, to a potential creditor, and to a potential investor.

A. Potential Plan Sponsor = Lambda Potential Creditor = Mesa Potential Investor = Novella
B. Potential Plan Sponsor = Lambda Potential Creditor = Novella Potential Investor = Mesa
C. Potential Plan Sponsor = Novella Potential Creditor = Lambda Potential Investor = Mesa
D. Potential Plan Sponsor = Novella Potential Creditor = Novella Potential Investor = Novella

Correct Answer:D

Question 32

- (Topic 2)
One difference between the internal and external analysis of a health plan's financial information is that

A. Internal analysis of the health plan can be more detailed and more specific than can external analysis
B. Internal analysts are more likely than external analysts to want comparative financial data about the health plan
C. Only internal analysts use trend analysis to analyze the health plan's financial statements
D. Only internal analysts typically conduct the financial analysis of the health planthemselves

Correct Answer:A

Question 33

- (Topic 2)
The Jamal Health Plan operates in a state that mandates that a health plan either allow providers to become part of its network or reimburse those providers at the health plan’s negotiated-contract rate, so long as the non-contract provider is willing to perform the services at the contract rate. This type of law is known as:

A. A fair procedure law
B. A direct access law
C. An any willing provider law
D. A due process law

Correct Answer:C

Question 34

- (Topic 1)
The Violin Company offers its employees a triple option of health plans: an HMO, an HMO with a point of service (POS) option, and an indemnity plan.
Premiums are lowest for the HMO option and highest for the indemnity plan. Violin employees who anticipate that they will be individual low utilizes of healthcare services are most likely to enroll in the

A. HMO and are least likely to enroll in the HMO with the POS option
B. HMO and are least likely to enroll in the indemnity plan
C. Indemnity plan and are least likely to enroll in the HMO
D. Indemnity plan and are least likely to enroll in the HMO with the POS option

Correct Answer:B

Question 35

- (Topic 1)
Over time, health plans and their underwriters have gathered increasingly reliable information about the morbidity experience of small groups.
Generally, in comparison to large groups, small groups tend to

A. Have more frequent and larger claims fluctuations
B. Generate lower administrative expenses as a percentage of the total premium amount the group pays
C. More closely follow actuarial predictions regarding morbidity rates
D. All of the above

Correct Answer:A